The Australian Charities and Not‑for‑profits Commission (ACNC) is reminding charities to ensure they maintain eligibility for registration, which includes meeting their obligations to the ACNC and fulfilling their charitable purpose, just days after it was revealed small charities registered will see their financial reporting annual revenue threshold increased from $250,000 to $500,000.
“Over the life cycle of a charity, if it is successful and grows, its activities may also expand, which is great,” ACNC commissioner Dr Gary John said. “However, it is important that charities don’t drift away from their purposes inadvertently.
“A charity’s activities and programs should reflect its documented purposes.”
Data from the Australian Charities Report seventh edition showed that many charities on the ACNC Charity Register have been in operation for decades, on average 32 years.
“The longevity of many charities is very heartening,” Dr John said. “But it also highlights the need for charities to ensure that activities stay on track in the long term.”
Charities are also being encouraged to check that the information the ACNC holds about them is accurate and up to date, by logging into the Charity Portal.
“With 4.7 million searches of the Register in the last 12 months, it is vital that we provide accurate information to people searching for charities,” Dr John said.
Last week it was announced that under reforms agreed to by the Council on Federal Financial Relations, financial reporting thresholds for small and medium charities registered with the ACNC will be lifted, allowing over 5,000 charities to redirect their resources to help vulnerable Australians.
The threshold changes, due to take effect from 1 July 2022, form part of the government’s response to recommendation 12 of the ACNC Legislation Review.
